RHIM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: RHI Magnesita India Ltd. (RHIM)

Swing Trade Rating: 2.9

📈 Technical Positioning

Current Price: ₹495 sits just below the 200 DMA (₹498) — slight technical weakness.

MACD at 7.02 and RSI at 53.7 — bullish signals, but not strong enough for a breakout setup.

Volume significantly below 1-week average — low trader engagement; signals caution.

🔍 Fundamental Snapshot

Valuation Metrics

High P/E of 50.5 vs. industry average of 41.2 — overvalued; limited upside from here.

Negative PEG Ratio (-5.57) — suggests earnings growth isn't supporting current valuation.

Profitability

ROE: 5.16%, ROCE: 7.01% — weak returns for shareholders.

Quarterly Profit Decline: ₹47.5 Cr → ₹36.2 Cr (−11.7%) — signs of earnings pressure.

EPS of ₹9.81 — modest for current valuation.

Leverage & Book Value

Debt-to-equity: 0.09 — very low; financially sound.

Book Value: ₹194 — stock trades at ~2.5x book, not alarming but not a value play either.

Institutional Action

FII change: +0.01% (flat)

DII change: −0.43% — mild bearish shift.

🎯 Optimal Entry Point

Buy Zone: ₹480–₹485

Entry near 50 DMA gives limited downside risk.

Wait for RSI above 56 and MACD continuation to confirm strength.

🚪 Exit Strategy (If Already Holding)

Target Zone: ₹520–₹530

Modest upside based on technical resistance levels and recent trading range.

Stop-Loss: ₹470

Protects against reversal toward low-volume support levels.

RHIM isn't a strong swing candidate currently due to low volume, weakening earnings, and stretched valuations. It may suit patient investors as a mid-term hold, especially given its strong debt profile. If you're looking for more aggressive setups, I can help you screen others with higher momentum and improving fundamentals. 📉📊

Edit in a page